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An organization must have a basic knowledge of business accounting and bookkeeping. Accountants and bookkeepers are primarily responsible for keeping track of where the money goes within an organization. There should be a detailed record of things like income and payments, taxes, expenses and other financial data.
However, maintaining detailed records and books of account is not only logical but also mandatory as per applicable laws and regulations. Here are some primary accounting requirements:
1) All business transactions, payments, and receipts must be recorded with proper documents
2) Business funds and personal funds should never be mixed
3) Where it becomes necessary to use personal funds for business purposes, such funds should be recorded as a ‘receipt’ and their usage entered/explained in the appropriate books of account
4) Where business funds are used for personal purposes, they should be recorded as payment/withdrawal/loan in all relevant business records
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